The African Development Bank (AfDB) has approved a US$400m to support the construction of the Mozambique LNG Area 1 Project. By doing so, the multilateral institution joins a global syndicate of commercial banks, development finance institutions, and export credit agencies, to jointly provide the requisite financing for the project. In September 2019, the US Export-Import Bank of the United States (the US Exim Bank) authorised a loan of US$5bn to finance the project. Financial close is expected within the first half of 2020.
The project is the first LNG development in Mozambique and includes the construction of two liquefaction trains with a combined capacity of 12.88 Mt/year (17.4 bcm/y), with commercial operations expected to start by 2024. In June 2019, partners awarded a US$6bn Engineering, Procurement, and Construction (EPC) contract to a joint venture of Saipem, McDermott International, and Chiyoda Corporation. Construction started in August.
The Project has already signed 8 long-term off-take contracts with companies including Bharat, Centrica, CNOOC, CPC Corporation, EDF, JERA, Pertamina, Shell, Tohoku Electric, and Tokyo Gas.
In September 2019, Total has completed the acquisition of Anadarko's 26.5% operated interest in the Mozambique LNG project for US$3.9bn. The project is now be owned by Total (26.5%), Mitsui (20%), OVL (10%), Mozambique's oil company ENH (15%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), and PTTEP (8.5%).
Interested in LNG Databases?
World LNG Database offers a complete set of data on LNG markets. The service provides detailed information on existing and planned liquefaction and regasification plants. It also includes LNG shipping around the world, LNG contracts, time series on regasification and liquefaction capacities, LNG flows and LNG prices for all players in the market.